US Treasury Yields Skyrocket: Can Stablecoins Save P2P Merchants from Spread Collapse?

## PUNCH

US Treasury yields are screaming, with the 30-year hitting 5.12% and the 10-year at 4.60% – multi-year highs that are nuking gold and Bitcoin.

## CONTEXT

This isn't some abstract economic theory; it's the brutal reality of rising interest rates making non-yielding assets look like a sucker's bet.

## NUMBERS

Stablecoin supply hit $323 billion by May 2026, with USDT at $190 billion and USDC at $78 billion. USDT holds $117 billion in T-bills, its largest reserve. The GENIUS Act, effective July 2026, mandates stablecoin reserves in cash, repo, or Treasuries under 93 days.

## P2P ANGLE

This means stablecoins are gobbling up short-term Treasuries, creating a bid that *could* stabilize USDT/USDC prices. But the long-end yield problem remains, meaning volatility is still your bread and butter – if you can navigate the spread compression.

## STRIKE

Forget stablecoins saving the long end; P2P merchants need to brace for continued yield-driven volatility that will either crush your spreads or create massive trading opportunities.

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